Glossary
What is a pro forma invoice?
By Tim White · Last updated
A pro forma invoice is a preliminary bill a seller sends before delivering goods or services. It lays out the expected cost, quantities, and terms so the buyer can plan or arrange payment, but it is not a formal demand for payment and does not go in the books as one. The final invoice follows once the order ships.
What it's used for
A pro forma gives the buyer a firm estimate to approve, budget against, or clear customs with, before the deal is final. Common in international trade and in any sale where the buyer needs the numbers up front.
How it differs from a commercial invoice
A commercial invoice records a completed sale and is what you pay and book against. A pro forma is a preview: same layout, different status. Paying against a pro forma by mistake, or booking it as the final invoice, is how records get double-counted.
InvoiceJet extracts the fields either way, with a confidence level on each, so you can see what a document says. Whether it is a pro forma or the final invoice is a status call you keep control of.
Common mistakes
A pro forma looks like the real invoice, which is where the errors start.
- Booking it into accounts payable, so the same cost lands twice once the commercial invoice arrives.
- Paying against it when no prepayment was agreed, then reconciling against a final invoice with different figures.
- Using its tax line to reclaim VAT. A pro forma is not a valid tax document in most countries.
Common questions
Do I pay a pro forma invoice?
Usually not directly. It is an estimate. Payment is normally made against the commercial invoice that follows, though some sellers ask for prepayment based on the pro forma.
What is the difference between a pro forma invoice and a quote?
A quote is an informal price offer, while a pro forma invoice is a formal document laid out like a real invoice with quantities, terms, and expected totals. A pro forma is closer to a commitment the buyer can budget or arrange payment against.
Can you claim tax back on a pro forma invoice?
No. A pro forma is not a valid tax document, so tax is reclaimed only against the final commercial or tax invoice that follows.
Sources
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